In this article, we will look at the 11 Most Undervalued Energy Stocks to Buy Now.
On March 13, David Katz, Matrix Asset Advisors, appeared on CNBC’s ‘Power Lunch’ to talk about how he is playing the equity market selloff and how investors should be thinking about the market. He stated that the news flow has been “absolutely miserable”, with “nothing particularly good” about the market, and that the vast majority of the negatives are starting to take hold in the market. Examining past wars, the market typically bottoms about 3 to 4 weeks into the conflict and then recovers very quickly, generally around two months later.
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Therefore, Katz said that we would be buying individual stocks into the sell-off, and thinks that if the market were to pull back another 4% to 5%, you could get more aggressive in the market in aggregate. However, he also said that it is very important to know the market is down about 4% or 5%, and there are many stocks that are down 10%-25%. It is thus significant to look at good-quality companies that are going to get through this.
Katz is very confident that the United States and the economy are both going to get through this and that the problems with the oil prices are going to be transitory. He further stated that inflation is going to clear up, then it is going to come down as quickly, and markets are going to recover.
With these market dynamics in view, let’s look at the most undervalued energy stocks to buy now.
Our Methodology
We used the Finviz stock screener to compile a list of the best energy stocks with a forward P/E below 15 and selected the top 11 most popular among elite hedge funds as of Q3 2025. We sourced the hedge fund data from Insider Monkey’s database. The stocks are ranked in ascending order of hedge fund sentiment.
Note: All data was recorded on March 13.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
11 Most Undervalued Energy Stocks to Buy Now
11. Eni S.p.A. (NYSE:E)
Eni S.p.A. (NYSE:E) is one of the most undervalued energy stocks to buy now. BofA lifted the price target on Eni S.p.A. (NYSE:E) to EUR 21 from EUR 18.50 on March 13 and reaffirmed a Neutral rating on the shares. Its commodities research team increased oil and gas price forecasts across 2026-27 to take into account the risks of a prolonged shutdown of the Strait of Hormuz, driving higher price targets across the firm’s European oil and gas coverage.
Eni S.p.A. released its fiscal Q4 and full-year 2025 results on February 26 and reported an adjusted net income of €1.20 billion in fiscal Q4, up 35% year-over-year. Fiscal Q4 CFFO came up to €3 billion, up 4% year-over-year. Management reported that cash flow remains well ahead of plan, with active portfolio management contributing to historically low gearing of 14%.
In its operational highlights, Eni S.p.A. also cited a binding agreement signed with Petronas to establish a jointly-controlled E&P satellite over Indonesia/Malaysia. Management stated that the agreement aims at combining two material gas asset portfolios with rich exploration potential and an initial production level of over 300 Kboe/d, anticipated to quickly ramp up to a sustainable level of over 500 Kboe/d.
Eni S.p.A. explores, refines, produces, and sells oil, electricity, gas, and chemicals. Its operations are divided into the following segments: Exploration and Production, Global Gas and LNG Portfolio, Refining & Marketing and Chemicals, Power & Renewables, and Corporate and Other Activities.
10. Equinor ASA (NYSE:EQNR)
Equinor ASA (NYSE:EQNR) is one of the most undervalued energy stocks to buy now. On March 13, BofA adjusted the price target on Equinor ASA (NYSE:EQNR) to NOK 345 from NOK 260 while maintaining a Neutral rating on the shares. Highlighting risks of a prolonged shutdown of the Strait of Hormuz, the firm stated that its commodities research team lifted oil and gas price forecasts across 2026-27, driving higher price targets across the stocks under its coverage in the European oil and gas sector.
In another development, Equinor ASA announced on March 11 that it entered into a bio-methanol agreement with Wallenius Wilhelmsen, a market leader in roll‑on/roll‑off (RoRo) shipping and vehicle logistics. Bio-methanol from Equinor ASA will soon fuel ships bringing cars and machinery from points of production to markets, with Wallenius Wilhelmsen using the bio‑methanol as bunker fuel for its upcoming dual‑fuel methanol vessels.
The company further stated that Wallenius Wilhelmsen will receive the bio-methanol bunkers at the Ports of Zeebrugge and Antwerp, with supplies commencing in late 2026 and positioning the partnership within key European maritime hubs.
Equinor ASA explores, transports, produces, refines, and markets petroleum and petroleum-derived products. The company’s operations are divided into the following segments: Exploration and Production Norway, Exploration and Production International, Exploration and Production USA, Marketing, Midstream, Processing, Renewables, and Other.
9. TotalEnergies SE (NYSE:TTE)
TotalEnergies SE (NYSE:TTE) is one of the most undervalued energy stocks to buy now. BofA lifted the price target on TotalEnergies SE (NYSE:TTE) to EUR 75 from EUR 70 on March 13 and reiterated a Buy rating on the shares. The firm stated that its commodities research team raised oil and gas price forecasts across 2026-2027, driving higher price targets across BofA’s European oil and gas coverage. It lifted oil and gas price forecasts to reflect the risks of a prolonged shutdown of the Strait of Hormuz.
TotalEnergies SE also received a rating update from Piper Sandler on March 12. The firm lifted the price target on the stock to $92 from $74, maintaining a Neutral rating on the shares and telling investors that it is revising forward estimates and price targets on the back of a $5.00/bbl increase in its mid-cycle WTI price forecast. It stated that this was driven by the lasting effects of the war in Iran.
Piper further said that although the duration of outages in the Middle East remains highly uncertain, the firm’s commodity macro team, led by Global Energy Strategist Jan Stuart, expects the 2026 crude balances to tighten by about 2.0 Mb/d compared to prior expectations. It added that lingering impacts/risk premiums and global resource tightening will raise the bar on future investment.
TotalEnergies SE operates as a global integrated energy company that produces natural gas and green gases, oil and biofuels, as well as renewables and electricity. It is headquartered in Courbevoie, France, and operates through the following business segments: Exploration & Production, Integrated LNG, Integrated Power, Refining & Chemicals, and Marketing & Services.
8. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is one of the most undervalued energy stocks to buy now. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) was downgraded to Hold from Buy by Jefferies on March 13, with the firm bringing the price target on the stock down to $19 from $20.30. The firm told investors that the rating update came after the Brazilian government announced a temporary 12% oil export tax, as well as a cut in fuel taxes and diesel subsidies as a means to contain the inflationary impact of the US-Israel war with Iran. Jefferies further noted that Petróleo Brasileiro S.A. – Petrobras could offset part of the export tax by improving refining margins, and added that the firm sees this news as materially removing its oil price leverage and ability to raise dividends.
Petróleo Brasileiro S.A. – Petrobras also received a rating update from HSBC on March 12. The firm lifted the price target on the stock to $20 from $16 and maintained a Buy rating on the shares. It told investors that it sees upside risks to oil prices and increased estimates accordingly for the Latin America oil names.
Petróleo Brasileiro S.A. – Petrobras is involved in exploration, production, and distribution activities involving oil and gas. The company’s operations are divided into the following segments: Exploration and Production; Refining, Transportation, and Marketing; and Gas and Low Carbon Energies.
7. Shell plc (NYSE:SHEL)
Shell plc (NYSE:SHEL) is one of the most undervalued energy stocks to buy now. BofA lifted the price target on Shell plc (NYSE:SHEL) to 3,250 GBp from 2,900 GBp on March 13, maintaining a Neutral rating on the shares. The firm stated that its commodities research team raised oil and gas price forecasts across 2026-2027 to take into account the risks of a prolonged shutdown of the Strait of Hormuz. This drove higher price targets across BofA’s European oil and gas coverage.
Separately, in its fiscal Q4 2025 results, Shell plc (NYSE:SHEL) announced that 2025 marked a year of accelerated momentum for the company, supported by strong operational and financial performance. Adjusted earnings for fiscal Q4 2025 were $3.3 billion and CFFO of $9.4 billion, supported by strong operational performance in Upstream and Integrated Gas in a lower price environment, offset by year-end movements. The company also reported a resilient CFFO of $42.9 billion for the full year of 2025.
Headquartered in London, Shell plc (NYSE:SHEL) produces oil and natural gas. The company’s operations are divided into the following segments: Integrated Gas, Upstream, Marketing, Chemicals and Products, Renewables and Energy Solutions, and Corporate.
6. Diamondback Energy, Inc. (NASDAQ:FANG)
Diamondback Energy, Inc. (NASDAQ:FANG) is one of the most undervalued energy stocks to buy now. Barclays lifted the price target on Diamondback Energy, Inc. (NASDAQ:FANG) to $190 from $185 on March 13, maintaining an Overweight rating on the shares and telling investors in a research note that it raised 2026 oil price estimates due to the Iran war. It believes that cash flow tailwinds for the exploration and production group are continuing to remain underappreciated, and while the oil spike is “unlikely to last for long”, the firm believes that the market is underappreciating the cash flow benefit, as well as the “durable benefit” it will have on the group’s capacity to raise cash returns beyond the conflict.
Diamondback Energy, Inc. also received a rating update from Piper Sandler on March 12. The firm lifted the price target on the stock to $248 from $215 and maintained an Overweight rating on the shares. It cited its increased price deck for the target bump and lifted its mid-cycle crude price forecast to $75 per barrel from $70 amid the Iran war. Piper anticipates lasting supply impacts and stated that higher prices are required to incentivize investment in production.
Diamondback Energy, Inc. is an independent oil and natural gas company that is involved in the development, acquisition, exploration, and exploitation of unconventional, onshore oil and natural gas reserves. The company’s operations are divided into the Upstream and Midstream Services segments.
5. Devon Energy Corporation (NYSE:DVN)
Devon Energy Corporation (NYSE:DVN) is one of the most undervalued energy stocks to buy now. On March 13, Barclays lifted the price target on Devon Energy Corporation (NYSE:DVN) to $54 from $52 while reiterating an Overweight rating on the shares. The firm told investors in a research note that it raised its 2026 oil price estimates on the Iran war, and believes that the cash flow tailwinds are still underappreciated for the exploration and production group. Barclays further stated that although the oil spike is not likely to last for long, the market is underappreciating the cash flow benefit and the “durable benefit” it will have on the group’s capacity to lift cash returns beyond the conflict.
In another development, Piper Sandler lifted the price target on Devon Energy Corporation to $67 from $59 on March 12, keeping an Overweight rating on the shares and citing its increased price deck for the target bump. The firm told investors that amid the Iran war, it increased its mid-cycle crude price forecast to $75 per barrel from $70, and anticipates lasting supply impacts. It also stated that higher prices are required to incentivize investment in production.
Devon Energy Corporation is involved in the exploration, development, and production of oil and natural gas properties. The company operates and develops the Delaware Basin, Eagle Ford, Heavy Oil, Barnett Shale, STACK, and Rockies Oil.
4. BP p.l.c. (NYSE:BP)
BP p.l.c. (NYSE:BP) is one of the most undervalued energy stocks to buy now. On March 13, BofA adjusted the price target on BP p.l.c. (NYSE:BP) to 400 GBp from 370 GBp and maintained an Outperform rating on the shares. Its commodities research team increased oil and gas price forecasts across 2026-27 to take into account the risks of a prolonged shutdown of the Strait of Hormuz, driving higher price targets across the firm’s European oil and gas coverage.
BP p.l.c. (NYSE:BP) also received a rating update from Piper Sandler on March 12. The firm adjusted the price target on the stock to $47 from $44 and maintained a Neutral rating on the shares, telling investors that, driven by the lasting effects of the war in Iran, the firm is revising forward estimates and price targets on the back of a $5.00/bbl rise in its mid-cycle WTI price forecast. Piper further stated that although the duration of outages in the Middle East remains highly uncertain, Piper’s commodity macro team, led by Global Energy Strategist Jan Stuart, anticipates that 2026 crude balances will tighten by about 2.0 Mb/d vs. prior expectations. In addition, lingering impacts/risk premiums and global resource tightening will raise the bar on future investment.
Headquartered in London, United Kingdom, BP p.l.c. (NYSE:BP) is an integrated oil and gas company that provides carbon products and services. Its operations are divided into the Gas and Low Carbon Energy, Oil Production and Operations, and Customers and Products segments.
3. EOG Resources, Inc. (NYSE:EOG)
EOG Resources, Inc. (NYSE:EOG) is one of the most undervalued energy stocks to buy now. EOG Resources, Inc. (NYSE:EOG) received a rating update from Barclays on March 13. The firm lifted the price target on the stock to $140 from $133 and reaffirmed an Equal Weight rating on the shares, telling investors that it raised 2026 oil price estimates on the Iran war. The firm believes that the cash flow tailwinds are still underappreciated for the exploration and production group. Barclays further told investors in a research note that although the oil spike is not likely to last for long, the market is underappreciating the cash flow benefit and the “durable benefit” it will have on the group’s capacity to lift cash returns beyond the conflict.
Piper Sandler also raised the price target on EOG Resources, Inc. to $144 from $127 on March 12, keeping a Neutral rating on the shares and citing its increased price deck for the target bump. The firm told investors that amid the Iran war, it increased its mid-cycle crude price forecast to $75 per barrel from $70 and anticipates lasting supply impacts. It also stated that higher prices are required to incentivize investment in production.
EOG Resources, Inc. explores, develops, produces, and markets natural gas and crude oil. Its operations are divided into the following geographical segments: United States, Trinidad, and Other International.
2. Phillips 66 (NYSE:PSX)
Phillips 66 (NYSE:PSX) is one of the most undervalued energy stocks to buy now. On March 12, Goldman Sachs lifted the price target on Phillips 66 (NYSE:PSX) to $186 from $168 and maintained a Neutral rating on the shares. The firm told investors in a research note that estimates across the U.S. Majors and Canadian Oils have been updated to reflect recent Middle East disruptions, with price targets lifted despite strong year-to-date equity performance.
Phillips 66 (NYSE:PSX) also received a rating update from Barclays on February 20. The firm lifted the price target on the stock to $158 from $142, maintaining an Equal Weight rating on the shares and telling investors that it updated the company’s model to reflect the fiscal Q4 report.
In its fiscal Q4 and full year 2025 results, the company reported fiscal Q4 earnings of $2.9 billion or $7.17 per share and adjusted earnings of $1.0 billion or $2.47 per share, including $239 million of pre-tax accelerated depreciation on the Los Angeles Refinery. Phillips 66 (NYSE:PSX) also reported full-year 2025 earnings of $4.4 billion or $10.79 per share and adjusted earnings of $2.6 billion or $6.44 per share, including $964 million of pre-tax accelerated depreciation on the Los Angeles Refinery.
Phillips 66 (NYSE:PSX) is involved in the processing, storage, transportation, and marketing of fuels and other related products. The company’s operations are divided into the following segments: Midstream, Chemicals, Refining, Renewable Fuels, Marketing and Specialties, and Corporate and Other.
1. EQT Corporation (NYSE:EQT)
EQT Corporation (NYSE:EQT) is one of the most undervalued energy stocks to buy now. EQT Corporation (NYSE:EQT) received a rating update from Barclays on March 13, with the firm lifting the price target on the stock to $69 from $67 and reiterating an Overweight rating on the shares. The firm believes cash flow tailwinds are underappreciated for the exploration and production group, and raised 2026 oil price estimates on the conflict in Iran.
In another development, UBS cut the price target on EQT Corporation to $75 from $76 on March 5, maintaining a Buy rating on the shares. The firm told investors in a research note that energy is viewed as offering attractive risk/reward, with the higher price target showing a $10/bbl rise in 2026 oil price assumptions to $68 WTI and $72 Brent and a modest valuation multiple expansion due to geopolitical risk. It further stated that markets seem to be underpricing prolonged Middle East conflict and potential Qatar gas supply disruptions, which may result in a lift in oil and natural gas prices and drive the strongest free cash flow upside for companies producing both oil and gas.
EQT Corporation is a natural gas production company involved in the provision of supply, transmission, and distribution of natural gas.
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